Finance Act 2000

Type Act

Publication 2000-03-23

State In force

Source Irish Statute Book

articles 166

(II) would be entitled to deduct tax in accordance with section 12 in respect of the acquisition, as a result of a transfer to that person, of immovable goods used by that person in the course of a supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule, if that tax had been chargeable but for the application of the provisions of section 3(5)(b)(iii) on that transfer,

then, in respect of each such acquisition, purchase or development, an amount (hereafter referred to in this subsection as the ‘adjustment amount’) shall be calculated in accordance with subparagraph (ii) and the cancellation amount shall be the sum of the adjustment amounts so calculated or, if there is only one such adjustment amount, that amount: but if there is no adjustment amount, the cancellation amount is nil.

(ii) The adjustment amount shall be determined by the formula—

	A x (10 - B)
	10

where—

A is—

(I) the amount of tax deductible in respect of the said acquisition, purchase or development of the said immovable goods, or

(II) the amount of tax that would be deductible in respect of the said acquisition of the said immovable goods if the provisions of section 3(5)(b)(iii) had not applied to the transfer of those immovable goods,

and

B is the number of full years for which the said goods were used by the person in the course of the supply of services of a kind referred to in paragraph (xiii) of the Sixth Schedule: but if the said number of full years is in excess of 10, such adjustment amount shall be deemed to be nil.

and

111 Amendment of section 11 (rates of tax) of Principal Act.

111.—Section 11 of the Principal Act is amended in subsection (1) (inserted by the Act of 1992) by the substitution in paragraph (f) of “4.2 per cent” for “4 per cent” (inserted by the Act of 1999).

112 Amendment of section 12 (deduction for tax borne or paid) of Principal Act.

112.—Section 12 of the Principal Act is amended—

(a) by the insertion in paragraph (a) of subsection (1) of the following subparagraph after subparagraph (via) (inserted by the Act of 1999):

“(vib) the residual tax referred to in section 12C, being residual tax contained in the price charged to the taxable person for the purchase of agricultural machinery (within the meaning of section 12C), by means of documents issued to that person during the period in accordance with section 12C(1B),”,

and

(b) by the substitution of the following for subsection (4):

“(4) (a) In this subsection—

‘deductible supplies or activities’ means the supply of taxable goods or taxable services, or the carrying out of qualifying activities as defined in subsection (1)(b);

‘dual-use inputs’ means goods or services (other than goods or services on the purchase or acquisition of which, by virtue of subsection (3), a deduction of tax shall not be made) which are not used solely for the purposes of either deductible supplies or activities or non-deductible supplies or activities;

‘non-deductible supplies or activities’ means the supply of goods or services or the carrying out of activities other than deductible supplies or activities;

‘total supplies and activities’ means deductible supplies or activities and non-deductible supplies or activities.

(b) Where a taxable person engages in both deductible supplies or activities and non-deductible supplies or activities then, in relation to that person’s acquisition of dual-use inputs for the purpose of that person’s business for a period, that person shall be entitled to deduct in accordance with subsection (1) only such proportion of tax, borne or payable on that acquisition, which is calculated in accordance with the provisions of this subsection and regulations, as being attributable to that person’s deductible supplies or activities and such proportion of tax is, for the purposes of this subsection, referred to as the ‘proportion of tax deductible’.

(c) For the purposes of this subsection and regulations, the proportion of tax deductible by a taxable person for a period shall be calculated on any basis which results in a proportion of tax deductible which correctly reflects the extent to which the dual-use inputs are used for the purposes of that person’s deductible supplies or activities and has due regard to the range of that person’s total supplies and activities.

(d) The proportion of tax deductible may be calculated on the basis of the ratio which the amount of a person’s tax-exclusive turnover from deductible supplies or activities for a period bears to the amount of that person’s tax-exclusive turnover from total supplies and activities for that period but only if that basis results in a proportion of tax deductible which is in accordance with paragraph (c).

(e) Where it is necessary to do so to ensure that the proportion of tax deductible by a taxable person is in accordance with paragraph (c), a taxable person shall—

(i) calculate a separate proportion of tax deductible for any part of that person’s business, or

(ii) exclude, from the calculation of the proportion of tax deductible, amounts of turnover from incidental transactions by that person of the type specified in paragraph (i) of the First Schedule or amounts of turnover from incidental transactions by that person in immovable goods.

(f) The proportion of tax deductible as calculated by a taxable person for a taxable period may be adjusted in accordance with regulations, if, for the accounting period in which the taxable period ends, that proportion does not correctly reflect the extent to which the dual-use inputs are used for the purposes of that person’s deductible supplies or activities or does not have due regard to the range of that person’s total supplies and activities.”.

113 Amendment of section 12A (special provisions for tax invoiced by flat-rate farmers) of Principal Act.

113.—Section 12A (inserted by the Act of 1978) of the Principal Act is amended in subsection (1) by the substitution of “4.2 per cent” for “4 per cent” (inserted by the Act of 1999).

114 Amendment of section 12C (special scheme for agricultural machinery) of Principal Act.

114.—Section 12C (inserted by the Act of 1999) of the Principal Act is amended by the insertion of the following subsections after subsection (1):

“(1A) A taxable dealer who purchases agricultural machinery from a person where the disposal of that agricultural machinery by such person to such taxable dealer was deemed in accordance with section 3(5)(c) not to be a supply of goods shall, subject to the provisions of this section and in accordance with subparagraph (vib) of paragraph (a) of subsection (1) of section 12, be entitled to deduct the residual tax, determined by the formula in subsection (3), contained in the price payable by such taxable dealer in respect of that purchase.

(1B) A person who disposes of agricultural machinery to a taxable dealer where the disposal of that agricultural machinery by such person to such taxable dealer was deemed in accordance with section 3(5)(c) not to be a supply of goods shall issue a document to the taxable dealer to whom the disposal is made and shall indicate on the document—

(a) that person’s name and address,

(b) the name and address of the taxable dealer,

(d) a description of the agricultural machinery, including details of the make, model and, where appropriate, the year of manufacture, the engine number and registration number of that machinery,

(e) the consideration for the disposal of the agricultural machinery,

(f) confirmation that the disposal is deemed in accordance with section 3(5)(c) not to be a supply of goods, and

(g) such other particulars as may be specified by regulations, if any.”.

115 Amendment of section 17 (invoices) of Principal Act.

115.—Section 17 of the Principal Act is amended by the insertion in subsection (1AB) (inserted by the Finance Act, 1996) after “subsection (1AA)” of “or section 12C (1B)”.

116 Amendment of section 20 (refund of tax) of Principal Act.

116.—Section 20 of the Principal Act is amended—

(a) by the insertion in subsection (3) of the following paragraph after paragraph (b):

“(bb) An order under this subsection may, if so expressed, have retrospective effect.”,

(b) by the substitution in subsection (5) of the following paragraph for paragraph (a)—

“(a) Where, due to a mistaken assumption in the operation of the tax, whether that mistaken assumption was made by a taxable person, any other person or the Revenue Commissioners, a person—

(i) accounted, in a return furnished to the Revenue Commissioners, for an amount of tax for which that person was not properly accountable, or

(ii) did not, because that person’s supplies of goods and services were treated as exempted activities, furnish a return to the Revenue Commissioners and, therefore, did not receive a refund of an amount of tax in accordance with subsection (1), or

(iii) did not deduct an amount of tax in respect of qualifying activities, as defined in section 12(1)(b), which that person was entitled to deduct,

then, in respect of the total amount of tax referred to in subparagraphs (i), (ii) or (iii) (in this subsection referred to as the ‘overpaid amount’) that person may claim a refund of the overpaid amount and the Revenue Commissioners shall, subject to the provisions of this subsection, refund to the claimant the overpaid amount unless that refund would result in the unjust enrichment of the claimant.”,

(c) by the substitution in subsection (5)(d)(i) of “a loss of demand for those goods or services, for the period for which the claim is being made”, for “a loss of turnover”, and

(d) by the substitution in subsection (5)(d)(iii) of “loss of demand” for “loss of turnover”.

117 Amendment of section 22 estimation of tax due for a taxable period) of Principal Act.

117.—Section 22 of the Principal Act is amended in subsections (1) and (2) by the substitution of “period” for “taxable period” wherever it occurs.

118 Amendment of section 23 (assessment of tax due for any period) of Principal Act.

118.—Section 23 (inserted by the Act of 1978) of the Principal Act is amended in subsection (1):

(a) by the deletion of “consisting of one taxable period or of two or more consecutive taxable periods”, and

(b) by the deletion of “the taxable period or periods comprised in”.

119 Amendment of section 25 (appeals) of Principal Act.

119.—Section 25 of the Principal Act is amended in clause (i) of subsection (2) by the substitution of “periods” for “taxable periods”.

120 Amendment of section 27 (fraudulent returns, etc.) of Principal Act.

120.—Section 27 of the Principal Act is amended by the deletion of subsection (8).

121 Amendment of section 32 (regulations) of Principal Act.

121.—Section 32 of the Principal Act is amended in paragraph (ag) (inserted by the Act of 1992) of subsection (1) by the deletion of “by tax-free shops”.

122 Amendment of First Schedule to Principal Act.

122.—The First Schedule to the Principal Act is amended in paragraph (xv) (inserted by the Finance Act, 1980) by the insertion after “Finance Act, 1994,” of “of bets of the kind referred to in section 75 of the Finance Act, 1996,”.

123 Amendment of Second Schedule to Principal Act.

123.—The Second Schedule to the Principal Act is amended—

(a) by the substitution of the following paragraph for paragraph (ia) (inserted by the Finance Act, 1994):

“(ia) subject to such conditions and in such amounts as may be specified in regulations,—

(a) the supply of goods, in a tax-free shop approved by the Revenue Commissioners, to travellers departing the State for a place outside the Community, or

(b) the supply, other than by means of a vending machine, of food, drink and tobacco products on board a vessel or aircraft to passengers departing the State for another Member State, for consumption on board that vessel or aircraft;”,

(b) by the insertion in paragraph (vb) (inserted by the Finance Act, 1993) after “paragraph (v)” of “but not including goods for supply on board such vessels or aircraft to passengers for the purpose of those goods being carried off such vessels or aircraft”, and

(c) by the insertion in subparagraph (a) of paragraph (xva) (inserted by the Finance Act, 1998) after “catalogues” of “, directories”.

124 Revocation (Part 3).

124.—The European Communities (Value-Added Tax) Regulations, 1999 (S.I. No. 196 of 1999), shall be deemed to have been revoked with effect from 1 July 1999.

PART 4 Stamp Duties

125 Interpretation (Part 4).

125.—In this Part “Principal Act” means the Stamp Duties Consolidation Act, 1999.

126 Amendment of section 81 (relief from stamp duty in respect of transfers to young trained farmers) of Principal Act.

126.—(1) Section 81 of the Principal Act is amended:

(a) by the substitution of the following subsection for subsection (2):

“(2) No stamp duty shall be chargeable under or by reference to the heading ‘CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance’ in Schedule 1 on any instrument to which this section applies.”,

(b) by the substitution of the following subsection for subsection (6):

“(6) Subsection (2) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped.”,

“(7) (a) If and to the extent that any person to whom land was conveyed or transferred by any instrument in respect of which relief from duty under this section was allowed—

(i) disposes of such land, or part of such land, within a period of 5 years from the date of execution of the instrument, and

(ii) does not replace such land with other land within a period of one year from the date of such disposal,

then such person or, where there is more than one such person, each such person, jointly and severally, shall become liable to pay to the Commissioners a penalty equal to the amount of the duty which would have been charged in the first instance if the land disposed of had been conveyed or transferred by an instrument to which this section had not applied together with interest on that amount as may so become payable charged at a rate of 1 per cent per month or part of a month from the date of disposal of the land to the date the penalty is remitted.

(b) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration made, or a certificate contained in the instrument, in accordance with subsection (3)—

(i) was untrue in any material particular which would have resulted in the relief afforded by this section not being granted, and

(ii) was made, or was included, knowing same to be untrue or in reckless disregard as to whether it was true or not,

then any person who made such a declaration, or where a false certificate has been included, the person or persons to whom the land is conveyed or transferred by the instrument, jointly and severally, shall be liable to pay to the Commissioners as a penalty an amount equal to 125 per cent of the duty which would have been charged on the instrument in the first instance had all the facts been truthfully declared and certified, together with interest on that amount as may so become payable charged at a rate of 1 per cent per month or part of a month from the date when the instrument was executed to the date the penalty is remitted.”,

and

(d) in subsection (9) by the substitution of “31 December 2002” for “31 December 1999”.

(2) Subsection (1) shall apply and have effect in relation to instruments executed on or after 1 January 2000.

127 Amendment of section 86 (exemption from stamp duty in respect of certain loan stock) of Principal Act.

127.—(1) Section 86 of the Principal Act is amended in paragraph (b)—

(a) by the substitution of “ICC Bank public limited company” for “Industrial Credit Corporation p.l.c.”, and

(b) by the deletion of “Bord Telecom Éireann,”.

(2) (a) Subsection (1)(a) shall have effect in relation to transfers of loan stock executed on or after 10 February 2000.

(b) Subsection (1)(b) shall have effect in relation to transfers of loan stock executed where the loan stock was issued on or after 10 February 2000.

128 Amendment of section 87 (stock borrowing) of Principal Act.

128.—(1) Section 87 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the deletion of the definition of “stock” and the definition of “stock borrower”, and

(ii) by the substitution of the following definition for the definition of “stock borrowing”:

“‘stock borrowing’ means a transaction in which a person other than an individual (in this section referred to as the ‘stock borrower’)—

(a) obtains stock from another person other than an individual (in this section referred to as the ‘lender’), and

(b) gives an undertaking to provide to the lender, not later than 6 months after the date on which the said stock borrower obtained the stock referred to in paragraph (a), equivalent stock;”,

(b) in subsection (3) by the substitution of “6 months” for “3 months” in both places where it occurs, and

(i) by the insertion of “, for a period of 3 years from the date of the stock borrowing,” after “maintain”, and

(ii) by the deletion of paragraph (a).

(2) (a) Paragraphs (a) and (b) of subsection (1) shall apply to stock borrowing transactions entered into on or after 6 April 1999, and

(b) Subsection (1)(c) shall apply to stock borrowing transactions entered into on or after 10 February 2000.

129 Stock repo.

129.—(1) The Principal Act is amended in Part 7 by the insertion in Chapter 2 of the following section after section 87:

“87A.—(1) In this section—

‘equivalent stock’ has the meaning assigned to it by section 87 subject to references—

(a) to ‘obtained from the lender’ being read as ‘transferred to the repo buyer’,

(b) to ‘stock borrowing’ being read as ‘stock transfer’,

(d) to ‘stock borrower’ being read as ‘repo buyer’,

(e) to ‘borrowed stock’ being read as ‘stock transferred’, and

(f) to ‘borrower’ being read as ‘repo buyer’;

‘repurchase agreement’ means an agreement between a person other than an individual (in this section referred to as the ‘repo seller’) and another person other than an individual (in this section referred to as the ‘repo buyer’) whereby the repo seller agrees to sell stock to the repo buyer on terms that the repo seller will repurchase, and the repo buyer will resell, equivalent stock not later than 6 months after the date of the stock transfer;

‘stock return’ means a transaction or transactions whereby a repo buyer conveys equivalent stock to a repo seller in pursuance of a repurchase agreement and within the 6 month time limit referred to in the repurchase agreement;

‘stock transfer’ means a transaction whereby a repo seller conveys stock to a repo buyer in pursuance of a repurchase agreement.

(2) Stamp duty shall not be chargeable on a stock transfer or on a stock return.

(3) If and to the extent that the repo seller does not repurchase or cause to be repurchased from the repo buyer before the expiration of the period of 6 months from the date of the stock transfer equivalent stock the repo buyer shall pay to the Revenue Commissioners within 14 days after the expiration of that period the amount of ad valorem duty which would have been chargeable on the stock so transferred if this section had not been enacted.

(4) If any repo buyer fails to duly pay any sum which that repo buyer is liable to pay under subsection (3), that sum, together with—

(a) interest on that sum at the rate of 1 per cent per month or part of a month from the first day after the expiration of the period of 6 months referred to in subsection (3) to the date of payment of that sum, and

(b) by means of further penalty, a sum equal to 1 per cent of the duty for each day the duty remains unpaid,

shall be recoverable from the repo buyer as a debt due to the Minister for Finance for the benefit of the Central Fund.

(5) Every repo buyer shall maintain, for a period of 3 years from the date of the stock transfer, separate records of each stock transfer and any stock return made in respect of that stock transfer and such records shall include, in respect of each stock transfer, the following:

(a) the name and address of the repo seller;

(b) the type, nominal value, description and amount of the stock transferred by the repo seller;

(d) the date on which equivalent stock should be repurchased by the repo seller;

(e) the type, nominal value, description and amount of the stock returned by the repo buyer to the repo seller and the date of such return;

(f) where paragraph (a), (b), (c), (d), (e), (f), (g) or (h) of the definition of ‘equivalent stock’ applies, full details of that equivalent stock.”.

(2) This section shall apply—

(a) in relation to subsections (1) and (2) of section 87A, to a stock transfer and a stock return in respect of such stock transfer each of which are executed on or after 6 April 1999, and

(b) in relation to subsections (3), (4) and (5) of section 87A, to a stock transfer and a stock return in respect of such stock transfer each of which are executed on or after 10 February 2000.

130 Reorganisation of undertakings for collective investment.

130.—(1) The Principal Act is amended by the insertion of the following section after section 88:

“88A.—Stamp duty shall not be chargeable on any conveyance or transfer of assets in respect of which no chargeable gain accrues by virtue of section 739A (inserted by the Finance Act, 2000) of the Taxes Consolidation Act, 1997.”.

(2) This section shall apply and have effect in relation to a conveyance or transfer executed on or after the date of the passing of this Act.

131 Amendment of section 97 (certain transfers following the dissolution of a marriage) of Principal Act.

131.—(1) Section 97 of the Principal Act is amended in subsection (2):

(a) by the deletion in subparagraph (i) of paragraph (a) of “or”,

(b) by the substitution in subparagraph (ii) of paragraph (a) of “1996, or” for “1996.”, and

“(iii) to an order or other determination to like effect, which is analogous to an order referred to in subparagraph (i) or (ii), of a court under the law of another territory made under or in consequence of the dissolution of a marriage, being a dissolution that is entitled to be recognised as valid in the State.”.

(2) This section shall apply to an order or other determination to like effect where the order or the determination is made on or after 10 February 2000.

132 Relief in respect of certain payments of stamp duty.

132.—(1) The Principal Act is amended in Part 8 by the insertion of the following section after section 120:

“120A.—The statement required to be delivered pursuant to this Part in respect of a transaction specified in section 116(1)(c) shall, in any case where, within the period of 4 years immediately before the date of the transaction and on or after 4 August 1973, there has been a reduction in the issued capital of the capital company concerned as a result of losses sustained by the company, be charged at the rate of zero per cent in respect of so much of the amount determined in accordance with section 118 as corresponds to the reduction in issued capital or to so much of the reduction in issued capital to which the rate of zero per cent had not been applied in respect of an earlier transaction occurring since the reduction in capital.”.

(2) This section shall apply and have effect in relation to transactions executed on or after 15 December 1999.

133 Amendment of Schedule 1 to Principal Act.

133.—(1) Schedule 1 to the Principal Act is amended—

(a) by the substitution under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance” of the following paragraph for paragraph (15):

“(15) Where in the case of a conveyance or transfer on sale or in the case of a conveyance or transfer operating as a voluntary disposition inter vivos the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that the person becoming entitled to the entire beneficial interest in the property (or, where more than one person becomes entitled to a beneficial interest in the property, each of them) is related to the person or each of the persons immediately theretofore entitled to the entire beneficial interest in the property in one or other of the following ways, that is, as a lineal descendant, parent, grandparent, step-parent, husband or wife, brother or sister of a parent or brother or sister, or lineal descendant of a parent, husband or
wife or brother or sister	...	...	a duty of an amount equal to one-half of the ad valorem stamp duty which, but for the provisions of this paragraph, would be chargeable under this heading but where the calculation results in an amount which is not a multiple of £1 the amount so calculated shall be rounded up to the nearest £.”,

and

(b) by the substitution in paragraph (1) of the Heading “LEASE” of “£15,000” for “£6,000”.

(2) (a) Subsection (1)(a) shall have effect in relation to instruments executed on or after 10 February 2000.

(b) Subsection (1)(b) shall have effect in relation to instruments executed on or after 1 December 1999.

PART 5 Residential Property Tax

134 Amendment of section 100 (market value exemption limit) of Finance Act. 1983.

134.—(1) Section 100 of the Finance Act, 1983, is amended in subsection (1) by the substitution in the definition of “general exemption limit” of “£300,000” for “£200,000” (inserted by the Finance Act, 1999) and of “2000” for “1999” (as so inserted).

(2) This section shall have effect in relation to any valuation date (within the meaning of section 95(1) of the Finance Act, 1983) occurring on or after 5 April 2000.

135 Amendment of section 110A (clearance on sale of certain residential property) of Finance Act, 1983.

135.—(1) Section 110A (inserted by the Finance Act, 1993) of the Finance Act, 1983, is amended by the insertion of the following subsection after subsection (11):

“(12) Subsection (2) of this section shall not apply to the sale of an estate or interest in residential property which has been previously acquired after 5 April 1996 by a bona fide purchaser for full consideration in money or money’s worth.”.

(2) This section shall apply and have effect in relation to the sale of an estate or interest in residential property (within the meaning of Part VI of the Finance Act, 1983) completed after 10 February 2000.

PART 6 Capital Acquisitions Tax

136 Interpretation

136.—In this Part “Principal Act” means the Capital Acquisitions Tax Act, 1976.

137 Amendment of section 2 (interpretation) of Principal Act.

137.—(1) Section 2 of the Principal Act is amended by the insertion after subsection (5) of the following subsection:

“(5A) For the purposes of this Act—

(a) a reference to a person being resident in the State on a particular date shall be construed as a reference to that person being resident in the State in the year of assessment in which that date falls (but, for those purposes, the provisions of Part 34 of the Taxes Consolidation Act, 1997, relating to residence of individuals shall not be construed as requiring a year of assessment to have elapsed before a determination of whether or not a person is resident in the State on a date falling in that year may be made), and

(b) a reference to a person being ordinarily resident in the State on a particular date shall be construed as a reference to that person being ordinarily resident in the State in the year of assessment in which that date falls.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

138 Amendment of section 6 (taxable gift) of Principal Act.

138.—(1) Section 6 of the Principal Act is amended by—

(a) the substitution of the following subsection for subsection (1):

“(1) In this Act ‘taxable gift’ means—

(a) in the case of a gift, other than a gift taken under a discretionary trust, where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the donee takes the gift, the whole of the gift;

(b) in the case of a gift taken under a discretionary trust where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the donee takes the gift or at the date of the gift or was (in the case of a gift taken after the death of the disponer) so resident or ordinarily resident at the date of that death, the whole of the gift;

(c) in the case where the donee is resident or ordinarily resident in the State at the date of the gift, the whole of the gift; and

(d) in any other case, so much of the property of which the gift consists as is situate in the State at the date of the gift.”,

(b) the substitution of the following subsections for subsection (3):

“(3) For the purposes of subsection (1), a person who is not domiciled in the State on a particular date shall be treated as not resident and not ordinarily resident in the State on that date unless—

(a) that date occurs on or after 1 December 2004,

(b) that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls, and

(4) (a) In this subsection—

‘company’ means a private company within the meaning assigned to it by section 16(2);

‘company controlled by the donee’ has the same meaning as is assigned to ‘company controlled by the donee or successor’ by section 16(3);

‘share’ has the meaning assigned to it by section 16(2).

(b) For the purposes of subsection (1)(d), a proportion of the market value of any share in a private company incorporated outside the State which (after the taking of the gift) is a company controlled by the donee shall be deemed to be a sum situate in the State and shall be the amount determined by the following formula—

	A x	B
		C

where—

A is the market value of that share at the date of the gift ascertained under section 16,

B is the market value of all property in the beneficial ownership of that company which is situate in the State at the date of the gift, and

C is the total market value of all property in the beneficial ownership of that company at the date of the gift.

(c) Paragraph (b) shall not apply in a case where the disponer was domiciled outside the State at all times up to and including the date of the gift or, in the case of a gift taken after the death of the disponer, up to and including the date of that death or where the share in question is actually situate in the State at the date of the gift.”.

(2) Subject to subsection (3), this section shall have effect in relation to gifts taken on or after 1 December 1999.

(3) Notwithstanding subsection (2), this section shall not have effect in relation to a gift taken under a disposition where the date of the disposition is before 1 December 1999.

139 Amendment of section 12 (taxable inheritance) of Principal Act.

139.—(1) Section 12 of the Principal Act is amended by—

(a) the substitution of the following subsection for subsection (1):

“(1) In this Act, ‘taxable inheritance’ means—

(a) in the case where the disponer is resident or ordinarily resident in the State at the date of the disposition under which the successor takes the inheritance, the whole of the inheritance;

(b) in the case where the successor (not being a successor in relation to a charge for tax arising by virtue of section 106 of the Finance Act, 1984, section 103 of the Finance Act, 1986, or section 110 of the Finance Act, 1993) is resident or ordinarily resident in the State at the date of the inheritance, the whole of the inheritance; and

(i) the whole of the property—

(I) which was to be appropriated to the inheritance; or

(II) out of which property was to be appropriated to the inheritance,

was situate in the State, the whole of the inheritance;

(ii) a part or proportion of the property—

(I) which was to be appropriated to the inheritance; or

(II) out of which property was to be appropriated to the inheritance,

was situate in the State, that part or proportion of the inheritance.”,

(b) in subsection (2), by the substitution of “subsection (1)(c)” for “subsection (1)(b)”,

(a) that date occurs on or after 1 December 2004,

(b) that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls, and

(4) (a) In this subsection—

‘company’ means a private company within the meaning of section 16(2);

‘company’ controlled by the successor’ has the same meaning as is assigned to ‘company controlled by the donee or successor’ by section 16(3);

‘share’ has the meaning assigned to it by section 16(2).

(b) For the purposes of subsection (1)(b), a proportion of the market value of any share in a private company incorporated outside the State which (after the taking of the inheritance) is a company controlled by the successor shall be deemed to be a sum situate in the State and shall be the amount determined by the following formula—

	A x	B
		C

where—

A is the market value of that share at the date of the inheritance ascertained under section 16,

B is the market value of all property in the beneficial ownership of that company which is situate in the State at the date of the inheritance, and

C is the total market value of all property in the beneficial ownership of that company at the date of the inheritance.

(c) Paragraph (b) shall not apply in a case where the disponer was not domiciled in the State at the date of the disposition under which the successor takes the inheritance or where the share in question is actually situate in the State at the date of the inheritance.”.

(2) Subject to subsection (3), this section shall have effect in relation to inheritances taken on or after 1 December 1999.

(3) Notwithstanding subsection (2), this section shall not have effect in relation to an inheritance taken under a disposition where the date of the disposition is before 1 December 1999.

140 Amendment of section 19 (value of agricultural property) of Principal Act.

140.—(1) Section 19 of the Principal Act is amended—

(a) by the substitution of the following definition for the definition of “farmer” in subsection (1):

“‘farmer’, in relation to a donee or successor, means an individual who is domiciled in the State and in respect of whom not less than 80 per cent of the market value of the property to which the individual is beneficially entitled in possession is represented by the market value of property

in the State which consists of agricultural property, and, for the purposes of this definition—

(a) no deduction shall be made from the market value of property for any debts or encumbrances, and

(b) an individual shall be deemed to be beneficially entitled in possession to—

(i) an interest in expectancy, notwithstanding the definition of ‘entitled in possession’ in section 2, and

(ii) property which is subject to a discretionary trust under or in consequence of a disposition made by the individual where the individual is an object of the trust.”,

(b) in subsection (5), by the substitution of the following paragraph for paragraph (a):

“(a) The agricultural value shall cease to be applicable to agricultural property, other than crops, trees or underwood, if and to the extent that such property, or any agricultural property which directly or indirectly replaces such property—

(i) is sold or compulsorily acquired within the period of 6 years after the date of the gift or the date of the inheritance; and

(ii) is not replaced, within a year of the sale or compulsory acquisition, by other agricultural property,

and tax shall be chargeable in respect of the gift or inheritance as if the property were not agricultural property:

Provided that this paragraph shall not have effect where the donee or successor dies before the property is sold or compulsorily acquired.”.

(2) Paragraph (a) of subsection (1) shall have effect in relation to gifts or inheritances taken on or after 10 February 2000, and paragraph (b) of subsection (1) shall have effect where the sale or compulsory acquisition which causes the agricultural value to cease to be applicable occurs on or after 10 February 2000.

141 Amendment of section 36 (delivery of returns) of Principal Act.

141.—(1) Section 36 of the Principal Act is amended—

(a) by the substitution of the following subsection for subsection (4):

“(4) Subsection (2) applies to a charge for tax arising by reason of the provisions of section 106 of the Finance Act, 1984, and to any other gift where—

(a) the aggregate of the taxable values of all taxable gifts taken by the donee on or after 2 December 1988, which have the same group threshold (as defined in the Second Schedule) as that other gift, exceeds an amount which is 80 per cent of the threshold amount (as defined in the Second Schedule) which applies in the computation of tax on that aggregate; or

(b) the donee or, in a case to which section 23(1) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return,

and for the purposes of this subsection, a reference to a gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.”,

(b) by the substitution of the following paragraph for paragraph (a) of subsection (14):

“(a) the taxable value of the taxable gift exceeds an amount which is 80 per cent of the group threshold (as defined in the Second Schedule) which applies in relation to that gift for the purposes of the computation of the tax on that gift.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

142 Amendment of section 48 (receipts and certificates) of Principal Act.

142.—Section 48 of the Principal Act is amended by—

(a) the substitution of the following subsections for subsections (3), (4) and (5):

“(3) The Commissioners shall, on application to them by a person who is an accountable person in respect of any of the property of which a taxable gift or taxable inheritance consists, if they are satisfied that the tax charged on the property in respect of the taxable gift or taxable inheritance has been or will be paid, or that there is no tax so charged, give a certificate to the person, in such form as they think fit, to that effect.

(3A) Where a person who is an accountable person in respect of the property of which a taxable gift or taxable inheritance consists has—

(a) delivered to the Commissioners, a full and true return of all the property comprised in the gift or inheritance on the valuation date and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance,

(b) made on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid, and

the Commissioners may give a certificate to the person, in such form as they think fit, to the effect that the tax charged on the property in respect of the taxable gift or taxable inheritance has been paid or that there is no tax so charged.

(4) A certificate referred to in subsection (3) or (3A) shall discharge the property from liability for tax (if any) in respect of the gift or inheritance, to the extent specified in the certificate, but shall not discharge the property from tax in case of fraud or failure to disclose material facts and, in any case, shall not affect the tax payable in respect of any other property or the extent to which tax is recoverable from any accountable person or from the personal representatives of any accountable person:

Provided that a certificate purporting to be a discharge of the whole tax payable in respect of any property included in the certificate in respect of a gift or inheritance shall exonerate from liability for such tax a bona fide purchaser or mortgagee for full consideration in money or money's worth without notice of such fraud or failure and a person deriving title from or under such a purchaser or mortgagee.

(5) Subject to the provisions of subsection (6), where tax is chargeable on the taxable value of a taxable gift or taxable inheritance and—

(a) application is made to the Commissioners by any person (in this section referred to as ‘the applicant’)—

(i) who is a person accountable, but not primarily accountable, for the payment of the whole or part of the tax, or

(ii) who is the personal representative of any person referred to in subparagraph (i),

and

(b) the applicant—

(i) delivers to the Commissioners a full and true return of all the property comprised in the gift or inheritance and such particulars as may be relevant to the assessment of tax in respect of the gift or inheritance, and

(ii) makes on that return an assessment of such amount of tax as, to the best of that person's knowledge, information and belief, ought to be charged, levied and paid,

the Commissioners may, upon payment of the tax assessed by the applicant, give a certificate to the applicant which shall discharge the applicant from any other claim for tax in respect of the gift or inheritance.”,

and

(b) the deletion of subsection (7).

143 Amendment of section 54 (provisions relating to charities, etc.) of Principal Act.

143.—(1) Section 54 of the Principal Act is amended by the substitution of the following subsection for subsection (1):

“(1) Where any person takes a benefit for public or charitable purposes that person shall be deemed—

(a) for the purposes of sections 5(1) and 11(1), to have taken that benefit beneficially, and

(b) for the purposes of the Second Schedule, to have taken a gift or an inheritance accordingly to which the group threshold of £15,000 applies.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

144 Amendment of section 55 (exemption of certain objects) of Principal Act.

144.—(1) Section 55 of the Principal Act is amended by the substitution of the following subsection for subsection (4):

“(4) The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date and—

(a) before the sale of the object,

(b) before the death of the donee or successor, and

(c) before such object again forms part of the property comprised in a gift or an inheritance (other than an inheritance arising by virtue of section 103 of the Finance Act, 1986) in respect of which gift or inheritance an absolute interest is taken by a person other than the spouse of that donee or successor,

there has been a breach of any condition specified in paragraph (b) or (c) of subsection (1).”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 10 February 2000.

145 Amendment of Second Schedule to Principal Act.

145.—(1) The Second Schedule to the Principal Act is amended—

(a) in Part I, by the substitution of the following paragraphs for paragraphs 1 to 7:

“1. In this Schedule—

‘group threshold’, in relation to a taxable gift or a taxable inheritance taken on a particular day, means—

(a) £300,000, where—

(i) the donee or successor is on that day the child, or minor child of a deceased child, of the disponer, or

(ii) the successor is on that day a parent of the disponer and—

(I) the interest taken is not a limited interest, and

(II) the inheritance is taken on the death of the disponer;

(b) £30,000, where the donee or successor is on that day, a lineal ancestor, a lineal descendant (other than a child, or a minor child of a deceased child), a brother, a sister, or a child of a brother or of a sister of the disponer;

(c) £15,000, where the donee or successor (who is not a spouse of the disponer) does not, on that day, stand to the disponer in a relationship referred to in subparagraph (a) or (b);

‘the consumer price index number’, in relation to a year, means the All Items Consumer Price Index Number for that year as compiled by the Central Statistics Office and expressed on the basis that the consumer price index number at mid-November 1996 is 100;

‘Table’ means the Table contained in Part II of this Schedule;

‘threshold amount’ in relation to the computation of tax on any aggregate of taxable values under paragraph 3, means the group threshold that applies in relation to all of the taxable gifts and taxable inheritances included in that aggregate but, in computing under this Schedule the tax chargeable on a taxable gift or taxable inheritance taken after 31 December 2000, that group threshold shall, for the purposes of this definition, be multiplied by the figure, rounded to the nearest third decimal place, determined by dividing by 104.8 the consumer price index number for the year immediately preceding the year in which that taxable gift or taxable inheritance is taken.

In the Table ‘Value’ means the appropriate aggregate referred to in paragraph 3.

The tax chargeable on the taxable value of a taxable gift or a taxable inheritance (hereafter in this Schedule referred to as the first-mentioned gift or inheritance) taken by a donee or successor shall be of an amount equal to the amount by which the tax computed on aggregate A exceeds the tax computed on aggregate B, where—

(a) aggregate A is the aggregate of the following:

(i) the taxable value of the first-mentioned gift or inheritance, and

(ii) the taxable value of each and every taxable gift and taxable inheritance taken previously by the said donee or successor on or after 2 December 1988, which has the same group threshold as the first-mentioned gift or inheritance,

(b) aggregate B is the aggregate of the taxable values of all such taxable gifts and taxable inheritances so previously taken which have the same group threshold as the first-mentioned gift or inheritance, and

Provided that—

(i) in a case where no such taxable gift or taxable inheritance was so previously taken, the amount of the tax computed on aggregate B shall be deemed to be nil, and

(ii) the amount of an aggregate that comprises only a single taxable value shall be equal to that value.

In the Table any rate of tax shown in the second column is that applicable to such portion of the value (within the meaning of paragraph 2) as is shown in the first column.

For the purposes of this Schedule, all gifts and inheritances which have the same group threshold and which are taken by a donee or successor on the same day shall count as one, and to ascertain the amount of tax payable on one such gift or inheritance of several so taken on the same day, the amount of tax computed under this Schedule as being payable on the total of such gifts and inheritances so taken on that day shall be apportioned rateably, according to the taxable values of the several taxable gifts and taxable inheritances so taken on that day.”,

(b) by the substitution of the following Part for Part II:

“PART II

TABLE

Portion of Value	Rate of tax
	Per cent
The threshold amount	Nil
The balance	20

”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

146 Amendment of section 39 (extension of section 55 (exemption of certain objects) of Capital Acquisitions Tax Act, 1976) of Finance Act, 1978.

146.—(1) As respects the year 2001 and subsequent years, section 39 of the Finance Act, 1978, is amended in subsection (1A)(b) by the insertion in subparagraph (i) after “September” of “of which not less than 10 of the days during that period shall fall on a Saturday or a Sunday or both”.

(2) This section shall apply to gifts and inheritances taken on or after 10 February 2000.

147 Amendment of section 109 (interpretation) of Finance Act, 1993.

147.—(1) Section 109 of the Finance Act, 1993, is amended—

(a) by the substitution in the definition of “the consumer price index number” of “mid-November 1996” for “mid-November, 1989”, and

(b) by the substitution of the following definition for the definition of “relevant threshold”:

“‘relevant threshold’ means—

(a) £40,000, where the death of the deceased occurred on or before 31 December 2000, and

(b) in any other case, £40,000 multiplied by the figure, rounded up to the nearest third decimal place, determined by dividing by 104.8 the consumer price index number for the year immediately preceding the year in which the death of the deceased occurred;”.

(2) This section shall apply and have effect in relation to persons dying on or after 1 December 1999.

148 Amendment of Chapter 1 (business relief) of Part VI of Finance Act, 1994.

148.—(1) Part VI of the Finance Act, 1994, is amended in Chapter 1—

(a) in section 134, by the substitution of the following subsections for subsections (1) and (2):

“(1) In determining for the purposes of this Chapter what part of the taxable value of a gift or inheritance is attributable to the value of relevant business property so much of the last-mentioned value as is attributable to—

(a) any excepted assets within the meaning of subsection (2), or

(b) any excluded property within the meaning of subsection (7),

shall be left out of account.

(2) An asset shall be an excepted asset in relation to any relevant business property if it was not used wholly or mainly for the purposes of the business concerned throughout the whole or the last two years of the relevant period, but where the business concerned is carried on by a company which is a member of a group, the use of an asset for the purposes of a business carried on by another company which at the time of the use and immediately prior to the gift or inheritance was also a member of that group shall be treated as use for the purposes of the business concerned, unless that other company's membership of the group falls to be disregarded under section 133:

Provided that the use of an asset for the purposes of a business to which section 127(4) relates shall not be treated as use for the purposes of the business concerned.”,

(b) in section 135—

(i) by the substitution of the following subsection for subsection (1):

“(1) In this section ‘relevant period’, in relation to relevant business property comprised in a gift or inheritance, means the period of 6 years commencing on the date of the gift or inheritance.”,

and

(ii) by the substitution of the following paragraph for paragraphs (ii) and (iii) of the proviso (inserted by the Finance Act, 1996) to subsection (2):

“(ii) this section shall not have effect where the donee or successor dies before the event which would otherwise cause the reduction to cease to be applicable.”,

and

“Avoidance of double relief.	135A.—Where the whole or part of the taxable value of any taxable gift or taxable inheritance is attributable to agricultural property to which subsection (2) of section 19 of the Principal Act applies, such whole or part of the taxable value shall not be reduced under this Chapter.”.

(2) Paragraphs (a) and (c) of subsection (1) shall have effect in relation to gifts or inheritances taken on or after 10 February 2000 and paragraph (b) of subsection (1) shall have effect where the event which causes the reduction to cease to be applicable occurs on or after 10 February 2000.

149 Amendment of section 142 (exemption of certain transfers from capital acquisitions tax following the dissolution of a marriage) of Finance Act, 1997.

149.—(1) Section 142 of the Finance Act, 1997, is amended in subsection (2):

(a) by the deletion of “and” in paragraph (c),

(b) by the substitution in paragraph (d) of “1996, and” for “1996.”, and

“(e) to an order or other determination to like effect, which is analogous to an order referred to in paragraph (a), (b), (c) or (d), of a court under the law of another territory made under or in consequence of the dissolution of a marriage, being a dissolution that is entitled to be recognised as valid in the State.”.

(2) This section shall apply to an order or other determination to like effect where the order or the determination is made on or after 10 February 2000.

150 Amendment of section 143 (abatement and postponement of probate tax on certain property) of Finance Act, 1997.

150.—(1) Section 143 of the Finance Act, 1997, is amended in subsection (1):

(a) by the deletion in subparagraph (i) of paragraph (a) of “or”,

(b) by the substitution in subparagraph (ii) of paragraph (a) of “1996, or” for “1996,”, and

(2) This section shall apply to an order or other determination to like effect where the order or the determination is made on or after 10 February 2000.

151 Exemption relating to certain dwellings.

151.—(1) The Principal Act is amended by the insertion of the following section after section 59B:

“59C.—(1) In this section—

‘dwelling-house’ means—

(a) a building or part (including an appropriate part within the meaning of subsection (5) of section 5) of a building which was used or was suitable for use as a dwelling, and

(b) the curtilage of the dwelling-house up to an area (exclusive of the site of the dwelling-house) of one acre but if the area of the curtilage (exclusive of the site of the dwelling-house) exceeds one acre then the part which comes within this definition is the part which, if the remainder were separately occupied, would be the most suitable for occupation and enjoyment with the dwelling-house;

‘relevant period’, in relation to a dwelling-house comprised in a gift or inheritance, means the period of 6 years commencing on the date of the gift or the date of the inheritance.

(2) Subject to subsections (3), (4), (5) and (6), a dwelling-house comprised in a gift or inheritance which is taken by a donee or successor who—

(a) has continuously occupied as his or her only or main residence—

(i) that dwelling-house throughout the period of 3 years immediately preceding the date of the gift or the date of the inheritance, or

(ii) where that dwelling-house has directly or indirectly replaced other property, that dwelling-house and that other property for periods which together comprised at least 3 years falling within the period of 4 years immediately preceding the date of the gift or the date of the inheritance,

(b) is not, at the date of the gift or at the date of the inheritance, beneficially entitled to any other dwelling-house or to any interest in any other dwelling-house, and

shall be exempt from tax in relation to that gift or inheritance, and the value thereof shall not be taken into account in computing tax on any gift or inheritance taken by that person unless the exemption ceases to apply under subsection (5) or (6).

(3) The condition in paragraph (c) of subsection (2) shall not apply where the donee or successor has attained the age of 55 years at the date of the gift or at the date of the inheritance.

(4) For the purpose of paragraph (c) of subsection (2), the donee or successor shall be deemed to occupy the dwelling-house concerned as his or her only or main residence throughout any period of absence during which he or she worked in an employment or office all the duties of which were performed outside the State.

(5) If a dwelling-house exempted from tax by virtue of subsection (2) is sold or disposed of, either in whole or in part, within the relevant period, and before the death of the donee or successor (not being a donee or successor who had attained the age of 55 years at the date of the gift or inheritance), the exemption referred to in that subsection shall cease to apply to such dwelling-house unless the sale or disposal occurs in consequence of the donee or successor requiring long-term medical care in a hospital, nursing home or convalescent home.

(6) The exemption referred to in subsection (2) shall cease to apply to a dwelling-house, if at any time during the relevant period and—

(a) before the dwelling-house is sold or disposed of, and

(b) before the death of the donee or successor,

the condition specified in paragraph (c) of subsection (2) has not been complied with unless that non-compliance occurs in consequence of the donee or successor requiring long-term medical care in a hospital, nursing home or convalescent home, or in consequence of any condition imposed by the employer of the donee or successor requiring the donee or successor to reside elsewhere.

(7) Where a dwelling-house exempted from tax by virtue of subsection (2) (hereafter in this section referred to as the ‘first-mentioned dwelling-house’) is replaced within the relevant period by another dwelling-house, the condition specified in paragraph (c) of subsection (2) shall be treated as satisfied if the

donee or successor has occupied as his or her only or main residence the first-mentioned dwelling-house, that other dwelling-house and any dwelling-house which has within the relevant period directly or indirectly replaced that other dwelling-house for periods which together comprised at least 6 years falling within the period of 7 years commencing on the date of the gift or the date of the inheritance.

(8) Any period of absence which would satisfy the condition specified in paragraph (c) of subsection (2) in relation to the first-mentioned dwelling-house shall, if it occurs in relation to any dwelling-house which has directly or indirectly replaced that dwelling-house, likewise satisfy the said condition as it has effect by virtue of subsection (7).

(9) Subsection (5) shall not apply to a case falling within subsection (7), but the extent of the exemption under this section in such a case shall, where the donee or successor had not attained the age of 55 years at the date of the gift or at the date of the inheritance, not exceed what it would have been had the replacement of one dwelling-house by another referred to in subsection (7), or any one or more of such replacements, taken place immediately prior to that date.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

152 Amendment of section 58 (exemption of certain receipts) of Principal Act.

152.—(1) Section 58 of the Principal Act is amended by the insertion after subsection (3) of the following subsection:

“(4) The receipt by a minor child of the disponer of money or money's worth for support, maintenance or education, at a time when the disponer and the other parent of that minor child are dead, shall not be a gift or an inheritance where the provision of such support, maintenance or education—

(a) is such as would be part of the normal expenditure of a person in the circumstances of the disponer immediately prior to the death of the disponer; and

(b) is reasonable having regard to the financial circumstances of the disponer immediately prior to the death of the disponer.”.

(2) This section shall have effect in relation to gifts or inheritances taken on or after the date of the passing of this Act.

153 Repeals etc.

153.—(1) Section 128 of the Finance Act, 1990, and sections 116 and 117 of the Finance Act, 1991, are repealed.

(2) This section shall have effect in relation to gifts or inheritances taken on or after 1 December 1999.

PART 7 Miscellaneous

154 Interpretation (Part7).

154.—In this Part “Principal Act” means the Taxes Consolidation Act, 1997.

155 Capital Services Redemption Account.

155.—(1) In this section—

“1999 amending section” means section 215 of the Finance Act, 1999;

“capital services” has the same meaning as it has in the principal section;

“fiftieth additional annuity” means the sum charged on the Central Fund under subsection (4);

“principal section” means section 22 of the Finance Act, 1950.

(2) In relation to the twenty-nine successive financial years commencing with the financial year ending on 31 December 2000, subsection (4) of the 1999 amending section shall have effect with the substitution of “£155,132,708” for “£142,789,461”.

(3) Subsection (6) of the 1999 amending section shall have effect with the substitution of “£117,443,787” for “£109,751,200”.

(4) A sum of £198,742,933 to redeem borrowings, and interest thereon, in respect of capital services shall be charged annually on the Central Fund or the growing produce thereof in the thirty successive financial years commencing with the financial year ending on 31 December 2000.

(5) The fiftieth additional annuity shall be paid into the Capital Services Redemption Account in such manner and at such times in the relevant financial year as the Minister for Finance may determine.

(6) Any amount of the fiftieth additional annuity, not exceeding £152,758,300 in any financial year, may be applied towards defraying the interest on the public debt.

(7) The balance of the fiftieth additional annuity shall be applied in any one or more of the ways specified in subsection (6) of the principal section.

156 Amendment of section 138 (holding and investment of moneys of Post Office Saving Bank Fund, etc.) of Finance Act, 1993.

156.—Section 138(1) (b) of the Finance Act, 1993, is hereby amended by the substitution of the following subparagraph for subparagraph (iv):

“(iv) any financial futures or options traded on an exchange which is a regulated market that has been notified to the Commission of the European Communities by a Member State of those Communities under Article 16 of Council Directive 93/22/EEC of 10 May 1993,”.

157 Deposit accounts for Exchequer moneys.

157.—(1) In this section “Minister” means the Minister for Finance.

(2) The Minister may, whenever he or she considers it appropriate, establish deposit accounts denominated in the currency of the State under such terms and conditions as he or she deems fit.

(3) The Minister may, from time to time, pay moneys out of the Exchequer accounts at the Central Bank of Ireland into the accounts established under subsection (2).

(4) The Minister shall, from time to time, make disbursements out of amounts credited to accounts established under subsection (2) into and only into the Exchequer accounts at the Central Bank of Ireland.

(5) Where the functions of the Minister under this section stand duly delegated to the National Treasury Management Agency under section 5 of the National Treasury Management Agency Act, 1990, any balance in accounts established under subsection (2) shall be consolidated with the balances in the Exchequer accounts for the purpose of the accounts prepared under section 12 of that Act, at the close of the financial year of the Agency.

(6) The First Schedule to the National Treasury Management Agency Act, 1990, is hereby amended by the addition of the following paragraph:

“(p) subsections (2) to (4) of section 157 of the Finance Act, 2000.”.

158 Amendment of section 63 of Central Bank Act, 1997.

158.—Section 63 of the Central Bank Act. 1997, is amended by the substitution of the following subsection for subsection (1):

“(1) Notwithstanding anything to the contrary contained in any enactment, or in any prospectus or other document relating to the terms of issue, holding or transfer of any securities or other instruments the issue or the transfer of such securities or other instruments may be made and shall be effective if instructions for the issue or transfer are communicated by electronic means and any issue or transfer of securities shall be deemed to be effective if recorded in a computerised system selected by the Bank following consultation with the National Treasury Management Agency, without the need for instructions in writing.”.

159 Payment to Temporary Holding Fund for Superannuation Liabilities.

159.—The Temporary Holding Fund for Superannuation Liabilities Act, 1999, is amended in section 1 by the insertion of the following after subsection (3):

“(3A) The Minister shall pay into the Fund, in the financial year 2000, out of the Central Fund or the growing produce thereof, a sum not exceeding £1,850,000,000.”.

160 Amendment of section 824 (appeals) of Principal Act.

160.—Section 824 of the Principal Act is amended in subsection(1) by the substitution of “Part” for “Chapter”.

161 Amendment of section 1003 (payment of tax by means of donation of heritage items) of Principal Act.

161.—As respects each year (being the calendar year 2000 and subsequent calendar years) section 1003 of the Principal Act is amended in subsection (2)(c) by the substitution in subparagraph (ii) of “£3,000,000” for “£750,000”, and that subparagraph, as so amended, is set out in the Table to this section.

TABLE

(ii) exceeds an amount (which shall not be less than £75,000) determined by the formula—

£3,000,000 — M

where M is an amount (which may be nil) equal to the market value of the heritage item (if any) or the aggregate of the market values at the respective valuation dates of all the heritage items (if any), as the case may be, in respect of which a determination or determinations, as the case may be, under this subsection has been made by the selection committee in any one calendar year and not revoked in that year.

162 Amendment of section 1086 (publication of names of tax defaulters) of Principal Act.

162.—(1) Section 1086 of the Principal Act is amended—

(a) in subsection (2)—

(i) by the substitution in paragraph (b) of “tax,” for “tax, or” and the substitution in paragraph (c) (iii) of “tax, or” for “tax.”, and

(ii) by the insertion after paragraph (c) of the following:

“(d) in whose case the Revenue Commissioners, having initiated proceedings for the recovery of any fine or penalty of the kind mentioned in paragraphs (a) and (b), and whether or not a fine or penalty of the kind mentioned in those paragraphs has been imposed by a court, accepted or undertook to accept, in that relevant period, a specified sum of money in settlement of any claim by the Revenue Commissioners in respect of any specified liability of the person under any of the Acts for—

(i) payment of any tax,

(ii) payment of interest on that tax, and

(iii) a fine or other monetary penalty in respect of that tax.”,

(b) by the insertion after subsection (2) of the following:

“(2A) For the purposes of subsection (2), the reference to a specified sum in paragraphs (c) and (d) of that subsection includes a reference to a sum which is the full amount of the claim by the Revenue Commissioners in respect of the specified liability referred to in those paragraphs.”,

(i) by the substitution of “Paragraphs (c) and (d)” for “Paragraph (c)”, and

(ii) by the substitution, in paragraph (c) of “paragraph (c) or (d), as the case may be,” for “paragraph (c)”,

and

(d) by the insertion after subsection (5) of the following:

“(5A) Without prejudice to the generality of paragraph (a) of subsection (5), such particulars as are referred to in that paragraph may include—

(a) in a case to which paragraph (a) or (b) of subsection (2) applies, a description, in such summary form as the Revenue Commissioners may think fit, of the act, omission or offence (which may also include the circumstances in which the act or omission arose or the offence was committed) in respect of which the fine or penalty referred to in those paragraphs was imposed, and

(b) in a case to which paragraph (c) or (d) of subsection (2) applies, a description, in such summary form as the Revenue Commissioners may think fit, of the matter occasioning the specified liability (which may also include the circumstances in which that liability arose) in respect of which the Revenue Commissioners accepted, or undertook to accept, a settlement, in accordance with those paragraphs.”

(2) This section shall apply—

(a) as respects fines or other penalties, as are referred to in paragraphs (a) and (b) of section 1086(2), which are imposed by a court, and

(b) as respects specified sums, as are referred to in paragraphs (c) and (d) of section 1086(2), which the Revenue Commissioners accepted, or undertook to accept, in settlement of a specified liability,

on or after the passing of this Act.

163 Amendment of section 1094 (tax clearance in relation to certain licences) of Principal Act.

163.—Section 1094 of the Principal Act is amended in subsection (1), in the definition of “licence” by the addition of the following paragraph after paragraph (j):

“(k) subsection (2A) (inserted by section 106 of the Finance Act, 2000) of section 62 of the National Cultural Institutions Act, 1997;”.

164 Amendment of Capter 5 (miscellaneous provisions) of Part 42 (collection and recovery) of Principal Act.

164.—Part 42 of the Principal Act is amended in Chapter 5 by the insertion after section 1006 of the following:

“Offset between taxes.	1006A.—(1) In this section—
	‘Acts’ means—
	(a) the Tax Acts,
	(b) the Capital Gains Tax Acts,
	(c) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act,
	(d) the statutes relating to the duties of excise and to the management of those duties,
	(e) the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act,
	(f) the Stamp Duties Consolidation Act, 1999,
	(g) Part VI of the Finance Act, 1983, and the enactments amending or extending that Part,
	(h) Chapter IV of Part II of the Finance Act, 1992,
	and any instrument made thereunder;
	‘claim’ means a claim that gives rise to a repayment of tax under any of the Acts and includes part of such a claim;
	‘liability’ means any tax, duty, levy or other charge due or estimated to be due under the Acts for a taxable period, income tax month, income tax year, chargeable period or chargeable event, as appropriate;
	‘overpayment’ means a payment or remittance under the Acts (including part of such a payment or remittance) which is in excess of the amount of the liability against which it is credited.
	(2) Notwithstanding any other provision of the Acts, where the Revenue Commissioners are satisfied that a person has not complied with all the obligations imposed on the person by the Acts, in relation to—
	(a) the payment of a liability required to be paid, and
	(b) the delivery of returns required to be made,
	they may instead of making a repayment to the person in respect of any claim or overpayment made by the person set the amount of the claim or overpayment against any liability due under the Acts.
	(3) The Revenue Commissioners shall make regulations for the purpose of giving effect to this section and, without prejudice to the generality of the foregoing, such regulations shall provide for the order of priority of liabilities due under the Acts against which any claim or overpayment is to be set in accordance with subsection (2).
	(4) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
Appropriation of payments.	1006B.—(1) In this section—
	‘Acts’ means—
	(a) the Tax Acts.
	(b) the Capital Gains Tax Acts,
	(c) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act,
	and any instruments made thereunder;
	‘payment’ means a payment or a remittance of a liability under the Acts and includes part of such a payment or remittance;
	‘liability’ means any tax or charge due under the Acts for a taxable period, income tax month, income tax year or chargeable period, as appropriate.
	(2) Notwithstanding any other provision of the Acts, where a payment is received by the Revenue Commissioners from a person and it cannot reasonably be determined by the Revenue Commissioners from the instructions, if any, which accompanied the payment which liabilities the person wishes the payment to be set against, the Revenue Commissioners may set the payment against any liability due by the person under the Acts.
	(3) The Revenue Commissioners shall make regulations for the purpose of giving effect to this section and, without prejudice to the generality of the foregoing, such regulations shall provide for the order of priority of liabilities due under the Acts against which a payment is to be set in accordance with subsection (2).
	(4) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.”.

165 Care and management of taxes and duties

165.— All taxes and duties imposed by this Act are by virtue of this section placed under the care and management of the Revenue Commissioners.

166 Short title, construction and commencement.

166.—(1) This Act may be cited as the Finance Act, 2000.

(2) Part 1 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts.

(3) Part 2 (so far as relating to customs) shall be construed together with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to the duties of excise and to the management of those duties.

(4) Part 3 shall be construed together with the Value-Added Tax Acts, 1972 to 1999, and may be cited together with those Acts as the Value-Added Tax Acts, 1972 to 2000.

(5) Part 4 shall be construed together with the Stamp Duties Consolidation Act, 1999.

(6) Part 5 shall be construed together with Part VI of the Finance Act, 1983, and the enactments amending or extending that Part.

(7) Part 6 (so far as relating to capital acquisitions tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

(8) Part 7 (so far as relating to income tax) shall be construed together with the Income Tax Acts and (so far as relating to corporation tax) shall be construed together with the Corporation Tax Acts and (so far as relating to capital gains tax) shall be construed together with the Capital Gains Tax Acts and (so far as relating to customs) shall be construed with the Customs Acts and (so far as relating to duties of excise) shall be construed together with the statutes which relate to duties of excise and the management of those duties and (so far as relating to value-added tax) shall be construed together with the Value-Added Tax Acts, 1972 to 2000, and (so far as relating to stamp duty) shall be construed together with the Stamp Duties Consolidation Act, 1999, and (so far as relating to residential property tax) shall be construed together with Part VI of the Finance Act, 1983, and the enactments amending or extending that Part and (so far as relating to gift tax or inheritance tax) shall be construed together with the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act.

(9) Except where otherwise expressly provided in Part 1, that Part shall apply as on and from 6 April 2000.

(10) In relation to Part 3:

(a) sections 107 and 121 and paragraphs (a) and (b) of section 123 shall be deemed to have come into force and shall take effect as on and from the 1 July 1999;

(b) sections 111 and 113 shall be deemed to have come into force and shall take effect as on and from the 1 March 2000;

(c) the provisions of this Part, other than those specified in paragraphs (a) and (b), shall have effect as on and from the date of passing of this Act.

(11) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment including this Act.

(12) In this Act, a reference to a Part, section or Schedule is to a Part or section of, or Schedule to, this Act, unless it is indicated that reference to some other enactment is intended.

(13) In this Act, a reference to a subsection, paragraph, subparagraph, clause or subclause is to the subsection, paragraph, subparagraph, clause or subclause of the provision (including a Schedule) in which the reference occurs, unless it is indicated that reference to some other provision is intended.

SCHEDULE 1 Amendments Consequential on the Introduction of Standard Rated Allowances

The Taxes Consolidation Act, 1997, is amended in accordance with the following provisions of this Schedule.

In section 3(1), in the definition of “relative” by the substitution of “relief” for “a deduction”.

In section 7(2), by the substitution of “relief” for “a deduction”.

In section 188(3), by the substitution of “relief under section 461(2) as an individual referred to in paragraph (a)(i) of the definition of ‘specified amount’ in subsection (1) of that section” for “a deduction specified in section 461(a)”.

In section 467(4), by the substitution of “entitled to relief” for “entitled to a deduction”.

In section 469—

(a) in subsection (1), in the definition of “dependant” by the substitution—

(i) in paragraph (a), of “relief under section 461(2) as an individual referred to in paragraph (a)(i) of the definition of ‘specified amount’ in subsection (1) of that section” for “a deduction mentioned in section 461(a)”, and

(ii) in paragraph (b), of “relief” for “a deduction”,

and

(b) by the substitution of the following subsection for subsection (4):

“(4) Subsections (5) to (7) of section 465 shall, with any necessary modifications, apply for the purposes of determining whether relief is to be granted under this section as they apply in determining whether relief is to be allowed under that section; but, where the child’s income exceeds the amount specified in subsection (6) of that section, relief under this section shall not be allowed.”.

In section 1023, by the insertion—

(a) in subsection (1), of “461A,” before “462”, and

(b) in subsection (2)(a), of “and reliefs” after “total income”.

In section 1024(2)(a), by the substitution—

(a) in subparagraph (ii), of “subsection (4)” for “subsection (3)”,

(b) in subparagraph (iii), of “section 465(4)” for “section 465(3)”, and

“(viii) relief under sections 472, 472A and 472B, to the husband or to the wife according as the emoluments from which relief under those sections is granted are emoluments of the husband or of the wife;”.

In section 1025(1), by the substitution of “relief under section 465” for “a deduction under section 465”.

SCHEDULE 2 Amendments and Repeals Consequential on Abolition of Tax Credits

PART 1 Amendments

The Taxes Consolidation Act, 1997, is amended—

(a) in section 2, by the insertion of the following after subsection (3):

“(3A) In the Tax Acts, a reference to a tax credit, in relation to a distribution, shall be construed as a reference to a tax credit as computed in accordance with those Acts as they applied at the time of the making of the distribution.”,

(b) in section 137(5), by the substitution for “subsections (2) to (4)” of “subsections (2) and (3)”,

“(8) Where a period of account for or in respect of which a company makes a distribution is not an accounting period and part of the period of account is within an accounting period, the proportion of the distribution to be treated for the purposes of this section as being for or in respect of the accounting period shall be the same proportion as that part of the period of account bears to the whole of that period.

(9) Where a company makes a distribution which is not expressed to be for or in respect of a specified period, the distribution shall be treated for the purposes of this section as having been made for the accounting period in which it is made.”,

(d) in section 141(10), by the substitution for “Subsections (6) and (7) of section 145” of “Subsections (8) and (9) of section 140”,

(e) in section 142(6), by the substitution for “subsections (6) and (7) of section 145” of “subsections (8) and (9) of section 140”,

(f) in section 143—

(i) by the substitution in subsection (1)(c) for “the tax credit comprised in which has been reduced under this section” of “which consists of a distribution made out of relieved income”, and

(ii) by the substitution in subsection (10) for “subsections (6) and (7) of section 145” of “subsections (8) and (9) of section 140”,

(g) in section 144—

(i) by the substitution in subsection (8) for “where R, S and T have the same meanings respectively as in section 147(1)(a)” of the following:

“where—

R is the amount of income of the company charged to corporation tax for the accounting period with the addition of any amount of income of the company which would be charged to corporation tax for the accounting period but for section 231, 232, 233 or 234, or section 71 of the Corporation Tax Act, 1976; and, for the purposes of this definition—

(a) the income of a company for an accounting period shall be taken to be the amount of its profits for that period on which corporation tax falls finally to be borne exclusive of the part of the profits attributable to chargeable gains, and

(b) the part referred to in paragraph (a) shall be taken to be the amount brought into the company’s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description,

S is the amount of the corporation tax which, before any set-off of or credit for tax, including foreign tax, and after any relief under section 448 or paragraph 16 or 18 of Schedule 32, or section 58 of the Corporation Tax Act, 1976, is chargeable for the accounting period, exclusive of the corporation tax, before any credit for foreign tax, chargeable on the part of the company’s profits attributable to chargeable gains for that period; and that part shall be taken to be the amount brought into the company’s profits for that period for the purposes of corporation tax in respect of chargeable gains before any deduction for charges on income, expenses of management or other amounts which can be deducted from or set against or treated as reducing profits of more than one description, and

T is the amount of the distributions received by the company in the accounting period which is included in its franked investment income of the accounting period, other than franked investment income against which relief is given under section 83(5), 157 or 158, and which relief was not subsequently withdrawn under those sections, with the addition of any amount received by the company in the accounting period to which section 140(3)(a), 141(3)(a), 142(4) or 144(3)(a) applies”,

and

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